Gold price is trading around $4,250 per ounce after a pretty strong rally this week. As we reported yesterday, a weaker US Dollar, lower bond yields, cheaper oil, geopolitical uncertainty, and key US employment reports have all supported precious metals.
The metal is up roughly $170 today alone, pushing toward the $4,300 level. The rally comes after gold spent months consolidating near the $4,000 support zone, frustrating bulls who had been waiting for confirmation that the correction from the January peak above $5,400 was finally over.
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Chinese Institutions Rotate Heavily Into Gold
One interesting gold news broke out today. China’s investors are rotating again, and they are doing it heavily into gold.
The Kobeissi Letter shared data showing that China’s gold-backed ETFs have recorded 14 consecutive daily inflows ending Monday, the longest streak since March. Over this period, these funds have attracted +$1.2 billion. The largest single-day inflow during this streak totaled +$370 million.
Before this rebound, China’s gold-backed ETFs recorded outflows in 38 of 44 trading sessions. That is a massive reversal. The data confirms that Chinese institutional investors are rotating back into gold after months of selling.
The attached chart below shows the daily fund flows for China’s gold ETFs from June through early August. The bars turned consistently green starting in mid-July, with the total cumulative flows climbing steadily. The pattern is clear: Chinese institutions are buying gold at the fastest pace since March.
This comes as elevated volatility in China’s stock market has renewed interest in alternative assets, particularly among institutional investors. Chinese investors are increasingly bullish on gold.
Peter Schiff: “Warsh Is Creating Inflation”
All of these positive gold news were welcomed nicely by gold maxis on X. One of them is Peter Schiff, who tweeted:
“Gold is up another $50, adding to today’s $170 gain and trading just below $4,300. Investors are starting to figure out that while Warsh is talking about fighting inflation, he is busy creating more of it by conducting dollar swaps to prevent Japan from selling U.S. Treasuries.”
Schiff’s argument is consistent with his long-standing view. The Fed is talking tough on inflation while taking actions that debase the dollar. Dollar swaps to support Japan’s yen keep the dollar artificially strong in the short term but ultimately add to the monetary supply. For Schiff, that is bullish for gold.
Is this trader about to be 100% correct? Read: Gold Price Prediction: The Trader Who Called the Top Now Predicts $4,500 Again
Gold Price Prediction for the Rest of This Week
The sentiment around gold is pretty positive right now. The Chinese buying data is strong. The dollar is weaker. The geopolitical backdrop is uncertain. All of these factors point to higher gold prices.
But price does not always move when the sentiment is positive. The $4,300 level is a psychological resistance. Gold has not closed above this level since June. A clean break above $4,300 would be the strongest signal bulls have had in weeks. A rejection there could send gold back toward $4,150-$4,200.
The most likely scenario for the rest of the week is a test of $4,300. Whether it breaks or holds will depend on the US jobs data and any geopolitical news. The risk-reward is neutral at current levels. I would not chase gold here, but I would not short it either.
I still expect Ethereum to outperform gold in the next 12 months. The upside for ETH from $1,850 is roughly 100-150% in a strong crypto recovery, while gold’s upside from $4,250 is likely 20-30% in the same period. The risk-reward favors ETH over gold for the next cycle.
That does not mean gold is a bad trade. It means I see better opportunities elsewhere.
For more gold news and price predictions from CaptainAltcoin, click here.
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